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Food Safety: Global Trends webinar for ECR Asia


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Food safety trends webinar delivered to ECR Asia.

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Food Safety: Global Trends webinar for ECR Asia

  1. 1. Food Safety TrendsJohn KeoghGlobal Advisor & DirectorProduct and Consumer SafetyGS1 Global Office30th January 2013
  2. 2. Agenda Key Trends – Consumer Goods Forum Trends related Food Safety What we know about…. Global pressures Consumer pressures Regulatory pressures Industry pressures Who produces food? Global Implications of Food Safety regulations Summary Possible tactics to consider Conclusions2
  3. 3. Who am I?- Live in Toronto- Global Advisor at GS1 Global Office Brussels- Focused on Product & Consumer Safety- Advising Industry, government and inter-governmental agenciesincluding EU, OECD, ASEAN and APEC- Started life in Ireland in a family retail business- Lived in Holland for 10 years- Build high performance supply chains across Europe- Re-engineered IT and supply chain systems and processes- Past 4 years extensive advisory work in Asia…..Very passionate about consumer safety…….3
  4. 4. ECR AP CouncilSustainabilityEmergingIndustryTrendsPeopleExcellenceHealth andWellnessDriver for today’s webinar4OperationalExcellenceIdentify trends of mostinterest to ECR:•Consumer technology access•Supply Chain info. availability•Increasing concern for ProductSafetyCollate and disseminate bestpractice information and engageECR members in an opendialogueEmerging Industry Trends Committee approach: Our job will be to keep our collective view of the emergingtrends current, and to help ECR members exploit the trends through best practice information, and shapingprojects for us to work with other ECR Committees to implement.
  5. 5. The 12 Global Trends 2020Consumer Goods Forum - Future Value ChainIncreasedUrbanizationAgingPopulationIncreasing Spreadof WealthIncreased Impact ofConsumer TechnologyAdoptionIncrease in ConsumerService Demands Increased Importanceof Health andWellbeingGrowing ConsumerConcern aboutSustainabilityShifting ofEconomic PowerScarcity of NaturalResourcesIncrease inRegulatory PressureRapid Adoption of SupplyChain TechnologyCapabilitiesImpact of Next-GenerationInformationTechnologiesSource: Future Value Chain 2020, TCGF, Capgemini, HP, Microsoft
  6. 6. What to do with this information?6
  7. 7. Let’s look closer at 2 of these Trendsrelated to Food and Public Safety7
  8. 8. 2020 Trend 6Increased importance of healthand wellbeing8
  9. 9. 2020 Trend 10:Increase in Regulatory Pressure9
  10. 10. What we know about Food Safety:Food Safety is highly visibleWhile Food Quality is improving, so is detection technology 10
  11. 11. Globally there are 1 billion cases of food borne illnesses resultingin an estimated 2.2 million deathsUSA : 48 million cases and 3,000 deathsAustralia : 5.4 million and 120 deathsEU : 45.5 million cases…..3,000 deaths ??All figures = annualSources: UN, US CDC, WHO, APECWhat we know about Food Safety:Food Safety is highly visible11
  12. 12. Let’s take a closer look at thegrowing pressures……• Global in nature…• Regulatory…• Consumer…• Industry…12
  13. 13. What we know about Food:Global pressures are increasingPopulation toincrease by morethan 30% to 9.2billion by 2050Demand forprotein richfoodsincreasingUrbanizationincreasing to 70% from49% - will drivechanges in supplychain structuresFAO – World Bank warningOnly 10% of demand can bemet with NEW croplandOnly 20% from existingcropland and existingtechnology70% must come fromtechnology and policyinnovationRising incomes = rising demands Food productionmust increase 70-100%Cereal productionwill rise 30% to 3billion MTMeat production willrise 40% to 470million MTPressures are for morefoods with shelf life riskincluding dairy, fish,meats, fruits, veg.Protect the BlueEconomyWe will needtwo planets tofeed the earthby 205050% of all foodsproduced is notconsumedSources: Various, UN, APEC PPFS 13
  14. 14. What we know about Food:Protein demand in Asia: Meat & EggsSource: FAO SOFA, 2009 14
  15. 15. What we know about Consumers and Food:Demand for information is increasingIs this healthy?Does it containpeanuts or otherallergens?Is the packagingrecyclable?Was this grownorganically?Are the employeestreated well and paidfairly?Does thiscompany actresponsiblytowardshareholders?Is the farming andharvesting donesustainably?Could I get this lessexpensively on theInternet?Do they testtheirproducts onanimals?Can I get moreinformation online??????Is this safe forme?Can I trust theproductclaims?Is the productgenuine?15
  16. 16. What we know about Regulations and Food:Regulatory pressures are increasingPush moreinformation toconsumersIs the packagingcompliant? Was this productproduced to food safetystandards?Are productstraceable to thesource?How do we enforce policy inincreasingly complex andglobal supply chains?Can we feed ournation?Was it produced safelyand according toregulatoryrequirements?Can we protect andalert citizens onunsafe products?Price stability?Enforcementwith reducedresources?BIO-Fuel DiversionNational interests versus Foreigninterests (Google “land grab inAfrica”)Foreign ownership?GMO?Reduce SpoilageBuild CapacityTechnologyTransferAPEC FarmerDaysNatural DisasterResilience16
  17. 17. What we know about Industry and Food:Industry pressures keep increasingPush moreinformation toconsumersDoes the productcontain allergens?Is my packaging,labeling and claimscorrect?Can weconsistentlyproduce to foodsafetystandards?Are my productsreally traceable?Myperishableproducts arebeing heldup atcustomsCan I guaranteesupply of rawmaterials?Can I protect mybrand from recallimpact?Can I protect andalert mycustomers aboutunsafe products?Are our products at risk ofcounterfeit or cheapersubstitution? (Ireland’shorsemeat in beef burgers?)Pricing stability?The perfect tomato !MaintainingSupplier Trust?KeepingConsumerTrust?How toimplement afood safetyculture?Multiple food safetystandardsHow do we keep trackof national and regionalregulations?ReducespoilageEfficiencyNon-CohesiveRegulations17
  18. 18. Globalization of the food chainincreases pressures18
  19. 19. What we know about Food Safety:Why did the Chicken cross the border?That’s the reality of today’s business…….19
  20. 20. What we know about Food Safety:Globalization increases pressure…..20
  21. 21. Traceability in the foodchain is complexSource: Gemini 03/06
  22. 22. Where do Food Safety Incidentsoccur?22
  23. 23. Does the consumerhave a role to play infood safety?What role shouldindustry play ?What role shouldgovernment play ?Is there a role forearly education onfood safety?What we know about Food Safety:Where was contaminated food consumed?23
  24. 24. Mistaken Identity… issue with foodsafety and globalization…..The strange case of the Cucumbers mistakenlyblamed and recalled / destroyed……..and costEU 200 million per week ………conclusion fromGerman authorities…..”we need bettertraceability”Key question:Do we really have full chain traceability and theability to effectively recall?24
  25. 25. Who Produces Food and whereare the biggest challenges?25
  26. 26. Rank and Share of World TotalWorld’s Top Food ProducersRankPrimaryCropsVegetables Fruits MeatFish &Aquaculture1China(18.7%)China(50%)China(18.8%)China(26.6%)China(33.4%)2Brazil(11.7%)India(8.6%)India(11%)US(15.4%)India(5.3%)3India(11.5%)US(4%)Brazil(6.8%)Brazil(8.2%)Peru(5.2%)Source: FAO Statistical Database; 2008 data.26
  27. 27. Rank and share of world totalAPEC’s Top Food ProducersSource: FAO Statistical Database; 2008 data.Rank CountryPrimaryCropsVegetables Fruits MeatFish &Aquaculture1 China 18.7% 50.0% 18.8% 26.6% 33.4%2 USA 8.4% 4.0% 4.9% 15.4% 3.4%3 Indonesia 3.5% 0.9% 2.8% 0.9% 4.7%4 Russia 2.5% 1.5% 0.5% 2.2% 2.5%5 Thailand 2.1% 0.4% 1.5% 0.8% 2.7%6 Mexico 1.6% 1.3% 2.8% 2.0% 1.2%7 Malaysia 1.2% 0.1% 0.2% 0.5% 1.2%8 Philippines 1.2% 0.6% 2.7% 1.0% 2.3%9 Viet Nam 1.2% 0.9% 1.0% 1.2% 3.2%10 Canada 1.1% 0.3% 0.1% 1.6% 0.8%11 Australia 1.0% 0.2% 0.6% 1.5% 0.2%12 Japan 0.5% 1.4% 0.6% 1.1% 3.5%13 Peru 0.3% 0.3% 0.7% 0.4% 5.2%14 Korea 0.3% 1.2% 0.5% 0.7% 1.7%15 Chile 0.2% 0.3% 0.9% 0.5% 3.1%16 New Zealand 0.1% 0.1% 0.2% 0.5% 0.4%APEC total 44.14% 63.4% 39.3% 57.1% 70.6%27
  28. 28. Food Chain reality…..28
  29. 29. 29Report published January 2013: 50% of all food produced is wastedIn South-East Asian countries, losses of rice can range from 37% to 80% of totalproduction depending on development stage, which amounts to total wastage inthe region of about 180 million tonnes annually.In China the rice loss figure is about 45%In Vietnam, rice losses between the field and the table can amount to 80% ofproduction.
  30. 30. Published by AAASH. C. J. Godfray et al., Science 327, 812-818 (2010)Biggest Challenges:Where does the Waste occur?30
  31. 31. Could a national food safety regulationhave global impact?31
  32. 32. Food Safety Modernization Act“I thank the President andmembers of Congress forrecognizing that the burdenthat foodborne illness placeson the American people is toogreat, and for taking thisaction.”Margaret A. Hamburg, M.D.,Commissioner of Food and DrugsSource: US FDA32
  33. 33. Food Safety Modernization ActSource: US FDA33Global Impact
  34. 34. The US Food Safety ModernizationAct will have global impactThe US imports 15% of itsfood…….from 130,000+registered foreign supplierswith more than 300,000production facilities.Source: US FDA34
  35. 35. Summary35Food Safety is a complex and global issue.Reviewing the 2020 trends more deeply withinyour organizations could help you define/refinestrategic objectives and tactics…..we suggestsome tactics that could help uncover blindspots……Global standards have proven to improvebusiness outcomes, while helping to meetregulatory requirements and reducing risk toconsumer safety
  36. 36. Summary:Trends to Objectives to Tactics36
  37. 37. Trends – Objectives - Tactics 37
  38. 38. Future Value Chain Trend 11:Rapid Adoption of Supply Chain TechnologyCapabilitiesCan GlobalStandardsHelp?Can GlobalStandardsHelp buildtrust?38
  39. 39. SUMMARY: TACTIC TO CONSIDER:“Value Traceability” can differentiate your brandsupply chainoptimizationcompliancebranding&marketingrisk reductionReduced RiskOptimized AssetsIncreased revenueLowered costsDelivering….Effective RecallSC Visibility100% TraceabilityDifferentiationComplianceWhilecompliance andrisk reductionaspects can becritical, they donot encourageinvestmentsbeyond therequiredminimumFOCUS:stay in businessFOCUS:increase valueValue Traceability39
  40. 40. 01020304050607080901471013161922252831343740RapidResponseCASESEarlyDetectionPotentialCases PreventedDAYSource: WHO keynote: GS1 Hong Kong Food Safety Seminar 2012.SUMMARY: TACTIC TO CONSIDER:You can differentiate your brand through early earningand rapid response capability40
  41. 41. InformationWhat information is being usedand given ?IdentificationHow traceable items areidentified and coded ?OperationsHow traceability works andhow crisis are managed ?ProceduresHow traceability isacknowledged anddocumented?Global TraceabilityAssessmentSUMMARY: TACTIC TO CONSIDER:A traceability conformance assessment canuncover critical blind spots
  42. 42. •16 cases of Salmonellosisreported in Usolie, Russia,including 13 infants, 1 child(age 4) and 2 adults•Product sent to 24 regionsin RussiaRussiaBelgiumHaitiCongoMozambiqueBurundiOutbreak of S. Oranienburg inRussia linked to internationallydistributed powdered infantformula from BelgiumCharachteristics•International distribution (Three continents)•Shelf-stable product (+1 year)•Vulnerable population (infants)Good Traceability System allowed theproducer to quickly identify the specificproduct and institute a very targeted recall(minimizing economic impact) quickly eliminatedfurther exposure (protecting public health)Source: WHO keynote: GS1 Hong Kong Food Safety Seminar 2012.SUMMARY: TACTIC TO CONSIDER:“Value Traceability” can differentiate your brand42
  43. 43. SUMMARY: The Way ForwardA short checklist to consider…Q: Is your organization aware of the food safety / labelling requirements for your target markets?Q: Are your products traceable upstream and downstream?Q: Does your external “digital” product information match your master data records?Q: Have you considered the value of auditing your public data (product master data) on commonlyavailable mobile scanners?Q: Have you completed an annual mock recall to test processes and functions?Q: Is you master data synchronized with your trading partners?Q: Is your organization aware of in-store innovation using databar to reduce spoilage?Q: Are you aware of the full traceability conformance assessment ?Q; Do you have full chain visibility and traceability43
  44. 44. Source: IBM analysis of 4,400KPI scorecards550% less rawmaterialsinventorycover2% highersupplierservice level3,5% higherinvoiceaccuracy21% shorterlead time42% lowerdistributioncosts35% less retaildistribution centerinventory cover32% less out-of-stocksSUMMARY: What we know about GS1 Global Standards:Global Standards improves business results44
  45. 45. Conclusions:..from the CGF 2020 Future Trends45
  46. 46. We are on a journey…..Adapt + Overcome = Progress…. 46
  47. 47. The IMPOSSIBLE is not always Impossible……..just DIFFICULT !47
  48. 48. 48ECR ContactIvett Katalin
  49. 49. 49Thank you!